Kogod in the Media/September 2011

Kogod News

Faculty, Programs, & Quotes

Publication cites Klein on the future of the IT industry
Executive-in-Residence Jill Klein was interviewed by Virginia Business about the future of the information technology (IT) industry. As federal austerity measures loom, companies with government contracts – previously thought to be “recession proof” – fear the worst. Some analysts think it will force the companies to scramble for new clients, but Klein suggested that changes could be more gradual. “In all fairness, it’s still going to be busy,” Klein said in the article. “There are ups and downs in IT, and these companies know it. These businesses are sustainable over the long haul because they have leadership teams that have made them valuable,” she said. Though she expects times may be tough, she also described what these companies should – and likely will – do to keep things moving forward. View full article (9/29/11)

Tax deductions and the job search: Kautter talks tips in the Wall Street Journal
With the U.S. unemployment rate hovering around 9 percent, thousands of people around the country are looking for jobs. Some of these searches can be costly; but David Kautter, executive-in-residence and managing director of the Kogod Tax Center, offered his suggestions in the Wall Street Journal to those on the hunt for jobs and tax deductions. One suggestion was earning income on the side: "By starting a consulting practice, taxpayers may convert limited write-offs into full deductions," Kautter noted to the WSJ. He also discussed the “fuzzy” boundaries of miscellaneous deductions while offering some tried and true items to try – and to not try – deducting. View full article (9/27/11)

Lumsdaine talks international debt and diplomacy with NPR
Robin Lumsdaine, Crown Prince of Bahrain Professor in International Finance, was interviewed by NPR in a radio segment regarding the potential effects of the European debt crisis. As the debt crisis in the Eurozone spreads, experts are sounding off about what this means for the still-recovering U.S. economy. With many American investments in and exports to Europe, as well as strong links between our banking sectors, the U.S. Secretary of Treasury Timothy Geithner has been working hard to increase stability. The resulting backlash to his advice may surprise some, but Lumsdaine was quick to explain it.

"I think a lot of times we in the U.S. like to share our experience, our views, and sometimes that can come across quite forcefully," says Lumsdaine in the interview."I think any time you have any kind of international discussions, there has to be some layer of diplomacy in there. It’s even more delicate now when you have scarce resources."

Secretary Geithner’s pressure on European governments is understandable; with the U.S. recovery finally in motion, analysts claim the best course for others is to stay ahead of their potential pitfalls and act quickly. Yet this advice could be hard for European leaders to handle considering how little attention the U.S. has paid their allies in recent years.

Lumsdaine, though, claims that this lack of attention is not to be misconstrued as ‘taking the allies for granted.’ “The more confident one is in the strength of a relationship, the less time one feels one needs to spend to coddle that relationship. And I think that's perhaps the situation with Europe. They've been our solid partners in many respects for so long, and so I think it's more that we're quite confident in that relationship, even as there may be tensions." View full article (9/23/11)

Breaking down the ‘Buffett Rule’
Executive-in-Residence and Managing Director of the Kogod Tax Center David Kautter has offered his interpretation on the likely form that President Obama’s ‘Buffett Rule’ will take to digital outlet The Daily. Experts have been debating the implications of the new proposal, which Obama and his team have described as a guideline that would prohibit millionaires from paying a smaller percentage of their income than those in the middle and lower class. Even the Treasury Secretary Timothy Geithner has left the details vague on the plan – but Kautter has offered up what he believes is the most likely route the rule will take. “When he says that he wants to raise the rates on people making more than a million dollars, he’s really saying that he wants to raise the rate on capital gains and dividends,” Kautter was cited as stating in the story. He also described how the mixing of types of income greatly affects the code, and thus how much people pay in taxes. View full article (9/20/11).

Liability in the Deepwater Horizon incident: Jacobs analyzes BP’s case
Executive-in-Residence Daniel Jacobs was cited in the Financial Times, with his opinion on BP’s liability in the case of the Deepwater Horizon spill. BP has claimed that it should not be entirely liable, as other companies involved should share the blame for the environmental catastrophe. Jacobs, however, disagrees. “If industry practice is generally negligent, that’s not a legal defense. If other companies were also culpable, that should not affect BP’s guilt or innocence in the eyes of the law,” Jacobs said in the article. If Jacobs’ view is taken by the courts, BP can anticipate some major fines and penalties. View full article (9/16/2011)

Forbes weighs in on the tax reform debate with help from AU’s resident tax expert
David Kautter, executive-in-residence and managing director of the Kogod Tax Center, has been cited by another piece on tax reform. This time, in an opinion piece published by Forbes, Kautter was approached regarding his stance on the benefits and detriments of current corporate taxes. “I don’t think U.S. corporations are overburdened by federal income taxes, but the overall tax code is ridiculous and needs reforming to get rid of the complexity,” Kautter stated to Forbes. View full article (9/9/11)

Kautter offers thoughts on Obama’s American Jobs Act
In its coverage of Obama’s speech introducing his new American Jobs Act, U.S. News and World Report sought further guidance on the subject from David Kautter, executive-in-residence and managing director of the Kogod Tax Center. As early reports suggested, the plan includes a payroll tax “holiday” for employers as an incentive to increase hiring. In the article, Kautter suggests that the incentive doesn’t cover multiple parts of the hiring process: “Hiring is a serious decision for most businesses…Most businesses would like to see some possibility of a sustained need for the worker. In other words, some increase in demand out there.” He also discusses points of opposition for Republican lawmakers in the plan. View full article (9/8/11)

Mark Waldman offers sharp words on the US’ credit downgrade in Canadian periodical
In an in-depth article examining Standard & Poor’s decision to downgrade America’s credit rating, Canada’s The Bottom Line turned to Executive-in-Residence Mark Waldman to offer an academic and professional perspective on the events leading up to S&P’s decision. "Didn’t all those folks look like a bunch of three-year-olds? There wasn’t an adult in the room? They were just scoring points trying to prove the other guy wrong. The S&P looked at that process and said, we’re never going to get out of our problem if we keep dealing with it this way," Waldman is cited as saying in regards to politicians and their lack of action. The article also evaluates other perspectives on what the effects have been short-term and will be long-term from the downgrade. View full article (9/8/11)

BizNews talks about Professor Bird’s newly publicized study on entrepreneurial success
A newly released study co-authored by Barbara Bird, associate professor of management, has drawn the attention of media outlet BizNews. The study was co-authored by J. Robert Baum, an associate professor of entrepreneurship at the University of Maryland and examines small business owners over a six year period. The most striking finding was that success was largely dependent on “street smarts” and intuition, which was defined in the study as being quick to adapt and respond, and as regularly testing new ideas. View full article (9/7/11)

Kogod professor offers a tip on Project Management Institute’s list for working students
Gwanhoo Lee, associate professor and director of the Center for IT and the Global Economy, offered up a tip on a list published on the Project Management Institute’s website. The institute (PMI) is the world's leading professional association for project managers with the largest membership for its kind. Their Career Central web portal – where this piece was featured – offers insight and resources for those seeking positions in project management. Lee was cited heavily in the third tip, which focuses on time management: “In addition to attending class, you need to be able to set aside at least eight hours a week to do readings, assignments and group projects… That means you may need to sacrifice part of your weekend and/or after-work hours.” View full article (9/6/11)